The global hemp industry size stood at USD 7.90 billion in 2023. The market value is slated to rise from USD 9.47 billion in 2024 to USD 47.82 billion by 2032 at a CAGR of 22.44% during 2024-2032. The expansion is on account of the legalization of the medical usage of cannabis in thirty countries. Some of these include Australia, Argentina, Colombia, Brazil, Canada, Ireland, Germany, Denmark, and others. An additional factor favoring industry expansion is the escalating product demand in various applications such as textiles, food and beverages, and dietary supplements sectors.
COVID-19 Impact:
Decreased Product Demand Affected Industry Growth during Coronavirus Pandemic
Several service providers and retail businesses faced permanent or temporary closure amid the pandemic. However, hemp retailers, processors, and cultivators continued their operation in the pharma sector. The market growth was impacted by trading restrictions from China. However, the period registered an escalating dependency on medications considering the upsurge in mental health issues.
Information Source: https://www.fortunebusinessinsights.com/industrial-hemp-market-102459
Segmentation:
Conventional Segment to Lead Owing to Growing Product Deployment in Various Industries
Based on the source, the market is bifurcated into organic and conventional. The conventional segment is anticipated to register a substantial surge over the forthcoming years. The escalation is driven by the growing product adoption across a series of industries such as textile, automotive, and paper.
Hemp Fiber Segment to Record Lucrative Growth Due to Increasing Adoption in Textile and Automotive Sectors
By type, the market is segmented into hemp seed oil, hemp seed, hemp fiber, and others. The hemp fiber segment is estimated to depict lucrative growth over the projected period. The surge is impelled by the escalating product adoption across the textile, automotive, and paper industries.
Textile Segment to Emerge Prominent Driven by Growing Adoption of Sustainable Practices
Based on application, the market is fragmented into pharmaceuticals, personal care & cosmetics, beverages, food (dietary and functional foods), and others. The textile segment accounted for a prominent share and is expected to register notable expansion over the estimated period. The growth is impelled by increasing consumer awareness regarding climate change.
By geography, the market for industrial hemp has been analyzed across Asia Pacific, Europe, North America, South America, and the Middle East & Africa.
Report Coverage:
The report provides an analysis of the key drivers, restraints, and major factors propelling the industry’s expansion. It further sheds light on the pivotal trends in the market and the impact of the COVID-19 pandemic on product sales. Additional aspects include an account of the key initiatives undertaken by major companies for gaining a strong competitive edge.
Drivers and Restraints:
Market Value to Surge with Increasing International Trade of Hemp Products
Industrial hemp market growth is being impelled by the soaring popularity of hemp-based products in numerous applications such as food, pharmaceuticals, and textiles. The surge can be further attributed to the growing demand for hemp fiber processing in a range of countries.
However, the market growth could be hindered by the presence of strict regulations concerning the sale, cultivation, and marketing of industrial hemp.
Regional Insights:
Europe is the Leading Region Owing to the Rising Product Consumption in the Region
Europe industrial hemp market share is poised to depict substantial expansion over the study period. The expansion is driven by the escalating consumption of hemp products in the region. The Asia Pacific market is expected to foresee appreciable growth throughout the projected period. The growth is impelled by the wide usage of the product in paper and textile manufacturing.
Competitive Landscape:
Major Companies Enter Collaborations to Strengthen Market Position
Key industry players are formulating and adopting a range of strategic initiatives for consolidating their market positions. These comprise collaborations, partnership agreements, and the formation of alliances. Other aspects include merger agreements, acquisitions, and others.
Key Industry Development
February 2023 – IT consulting and managed services company Alcott Enterprises inked a collaboration with Flourish Software. The deal is centered on the delivery of improved implementation services, support, technical expertise, and integration capabilities for hemp companies.
List of Key Players Mentioned in the Report:
- Fresh Hemp Foods Ltd. (Canada)
- IND HEMP, LLC. (U.S.)
- Blue Sky Hemp Ventures (Canada)
- Panda Biotech, LLC (U.S.)
- Hemp Republic (India)
- South Hemp Tecno Srl (Italy)
- HEMP FACTORY (Germany)
- East Mesa (U.S.)
- DON Processing, Inc. (U.S.)
- HempFlax Group B.V. (Netherlands)
